Page 70 - RusRPTMar23

the fall. This was facilitated by the resolution of the gas crisis. As a result, the annual growth rate for 2022 is estimated at 3.5% in the EU and the euro area. The GDP growth forecast for 2023 has been raised from 0.3% to 0.8% in the 27 EU countries and to 0.9% in the 20 eurozone countries. The growth rate forecast for 2024 has not changed and is estimated at 1.6% and 1.5% for the EU and the eurozone, respectively. Headline inflation is forecast to fall from 9.2% in 2022 to 6.4% in 2023 and 2.8% in 2024 in the EU. The euro area is projected to decelerate from 8.4% in 2022 to 5.6% in 2023 and 2.5% in 2024.
The energy crisis triggered by Russia has cost Europe €800B.The costs incurred by European countries to help households and companies due to the sharp increase in energy prices have increased to almost €800B, according to data from the Bruegel analytical center. EU countries have allocated €681B to tackle the energy crisis, while the UK allocated €103B and Norway €8.1B from September 2021. The €792B total is up from €706 billion in the center's last estimate in November, as countries continue to grapple with the consequences of Russia cutting off most of its gas supplies to Europe in 2022. Germany spent the most, €270B, while the UK, Italy, and France spent less than €150B each. Luxembourg, Denmark, and Germany spend the most per capita. Spending associated with the energy crisis has reached the level of the EU's €750B Covid-19 recovery fund. Most of the governments providing support have focused on non-targeted measures to contain the retail prices consumers pay for energy.
The official CBR macroeconomic forecasts are here.
70 RUSSIA Country Report March 2023 www.intellinews.com